{"id":36452,"date":"2013-11-18T12:00:19","date_gmt":"2013-11-18T12:00:19","guid":{"rendered":"http:\/\/www.transcend.org\/tms\/?p=36452"},"modified":"2015-05-05T22:21:12","modified_gmt":"2015-05-05T21:21:12","slug":"the-euro-zone-profiteers","status":"publish","type":"post","link":"https:\/\/www.transcend.org\/tms\/2013\/11\/the-euro-zone-profiteers\/","title":{"rendered":"The Euro Zone Profiteers"},"content":{"rendered":"

\"eurozone12<\/a><\/p>\n

A new CorpWatch report shines a light on the role of six major banks in Greece, Ireland and Spain in the EuroZone crisis. \u201cThe EuroZone Profiteers\u201d profiles Commerzbank, Depfa and Westdeutsche Landesbank from Germany; Cr\u00e9dit Agricole and Soci\u00e9t\u00e9 G\u00e9n\u00e9rale from France; together with Dexia \u2013 a Franco-Belgian financial institution.<\/p>\n

There has been much debate among economists on how the creation of the Euro without supportive infrastructure like a banking union triggered the economic crisis in Europe. This report will add to that discussion by analyzing how these banks helped fuel the credit boom in the EuroZone before the property bubble burst, first in the U.S. and then across the Atlantic, leaving borrowing countries deep in debt. Over the last two decades, banks across Europehave come under increasing pressure to compete internationally – from bureaucrats like Mario Monti, the former by European Union Competition Commissioner, who mistakenly believed that greater efficiency would be the result. As Germany withdrew state guarantees for regional banks and France privatized nationalized banks, these banks took advantage of their high credit ratings to flock to countries on the periphery of the EuroZone with cheap and easy loans after the launch of the single currency.<\/p>\n

Countries like Greece, Ireland and Spain who had struggled with high interest rates and unemployment for decades, jumped at this opportunity. The ensuing cash influx created an economic bubble characterized by a boom in risky public and private sector projects.<\/p>\n

When borrowing countries were unable to pay back their debts, international lenders put the blame for the economic crisis on lazy workers, bloated social services, and unwise borrowings by foolish governments. In return for financial support, these lenders required that the borrowers impose \u2018austerity\u2019 which cut social-spending \u201cluxuries\u201d such as school books and subsidized health care in order to generate savings to pay off the loans.<\/p>\n

\u201cWealthy countries and international lenders claim that the recent bailouts rescued rash and wasteful borrowers in Greece, Ireland and Spain. In reality, they were often repaying foolish loans that Belgian, French and German banks made in an effort to pump up their own profits which helped cause the crisis in the first place,\u201d says Pratap Chatterjee, executive director of CorpWatch. \u201c \u2018The EuroZone Profiteers\u2019 is intended to raise serious questions about the role of European bankers and bureaucrats in bringing the EuroZone to the point of collapse.\u201d<\/p>\n

The EuroZone Profiteers<\/strong><\/b><\/p>\n

Summary<\/strong>
\n<\/a>
\nIntroduction<\/strong><\/p>\n

\u2022 Welcome to the Casino<\/a>
\n\u2022 Who Owes Whom?<\/a><\/p>\n

German Banking: Parochial and Overbanked, or Small Is Beautiful? <\/a><\/strong><\/p>\n

\u2022 Westdeutsche Landesbank: A Jumbo with Engines on Fire and Nowhere to Land<\/a>
\n\u2022 Depfa and Hypo Real Estate: One-Eyed Man Becomes King in the Land of the Blind<\/a>
\n\u2022 Commerzbank: Property Lending Can Be a Mug’s Game <\/a><\/p>\n

French Banking: Less State = Less Happiness<\/a><\/strong><\/p>\n

\u2022 Soci\u00e9t\u00e9 G\u00e9n\u00e9rale: Arrived with a Swagger, Brought Down by a Gamble <\/a>
\n\u2022 Cr\u00e9dit Agricole: Ready to Forget Cautious Lessons About Banking<\/a>
\n\u2022 Dexia: Using Public Funds to Support a Casino<\/a><\/p>\n

Lending Frenzy <\/a><\/strong><\/p>\n

\u2022 Spain: An Airport Without Planes, and the Never-Ending Property Boom <\/a>
\n\u2022 Greece: Of Disappearing Debt and Illegal Loans <\/a>
\n\u2022 Ireland: From Miraculous Beast to Failed Civilization <\/a><\/p>\n

Conclusion<\/strong><\/p>\n

\u2022 Odious Debt<\/a><\/p>\n

\u2022 Time to Investigate the Bankers and Bureaucrats <\/a><\/p>\n

A PDF of the report is available at: https:\/\/s3.amazonaws.com\/corpwatch.org\/downloads\/EuroZoneProfiteers.pdf<\/a><\/p>\n

Press Contact: Pratap Chatterjee +1 202 580 8393, \u201cpratap AT corpwatch.org\u201d<\/i><\/p>\n

Go to Original \u2013 corpwatch.org<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

A new CorpWatch report shines a light on the role of six major banks in Greece, Ireland and Spain in the EuroZone crisis.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[51],"tags":[],"class_list":["post-36452","post","type-post","status-publish","format-standard","hentry","category-europe"],"_links":{"self":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/36452","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/comments?post=36452"}],"version-history":[{"count":0,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/36452\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/media?parent=36452"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/categories?post=36452"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/tags?post=36452"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}